tv Markets Now FOX Business January 4, 2013 11:00am-1:00pm EST
she has never been asked to play basketball with the president. stuart: i want to know what you think was the biggest story of the day? >> republicans lost of faith. where will they go? we do not know. thank you caving on guns, immigration and everything. >> we have seen stagnation across the board. i agree with gerri. they should not be acceptable in the united states of america. we should not be accepting these lame unemployment numbers. connell: the biggest story is obviously rex ryan and his questionable tattoo.
good morning, everybody. i am connell mcshane. where are the spending cuts? now, the president may want to pull the rug out from under them. we will tell you who has the leverage. we are all expected to get something less in our paycheck. how much the government takes is the question. cash only. the vatican is not in line with new regulations. the pope can only accept your cash donations. the actor patrick dempsey's new business is coffee. he is taking on starbucks. all of that is going on today. plus, it is a jobs friday. we start off with nicole petallides. nicole: not too far off the unchanged line.
it is just not good enough. americans are still waiting for jobs. the nasdaq and the dow pulling back a little bit. today lulu lemon is down. at the same time, they upgraded under armour. what is interesting, though, when i was looking out lulu women, over 52 weeks, it is up over 44%. it has been a stellar performer. it has gained in popularity. connell: thank you very much.
there is fresh white house reaction just coming in from this morning's jobs data. peter barnes has the reaction. peter: the numbers came in about as expected. the 150,000 new jobs was about the same pace that we have seen on average each month for the last two years. job creation may have gotten a little boost from hurricane sandy. construction added 30,000. maybe some places where placing damaged cars in december. a little surprise in the unemployment report is the rate was unchanged in november once it was revised up. we made a big deal about this when it dropped to 7.7% from 7.9% in october. the labor department announced
its regular annual adjustment of its reports because of seasonal factors affected just one month, november. >> there are some signs that the holiday shopping season started earlier. also, because of internet sales we are affecting package delivers. the nature doesn't change as the economy evolves around time. the bureau regularly need to keep up with those changes. peter: "while more work remains to be done, today's unemployment rate provides further evidence that the u.s. economy is continuing to heal." republicans, of course, are saying it is not good enough. speaker boehner out with a comment this morning. our oversized and overspent
government has a drag on economic growth and job creation . connell: peter, thank you. you talked about alan krueger and his interview. they would like to see no drama surrounding the debt ceiling to the association. they feel the economy would be in better shape if we did not have any drama. 72% of americans agree any increase in the nation that limit must be accompanied by spending cuts and reforms of a greater amount. that is the principle i laid out, boehner said. repeated a number of times since. it sounds like a dog will have plenty of drama in his debate. >> oh, i think there will be
plenty of drama. they need to propose some spending cuts and take some leadership role in this. whether we accompany the debt ceiling increase with debt reduction, which, by the way, is the typical way things happen. that is business as usual. if the president wants to avoid drama, he should get a head of this. connell: let me ask you about the debt ceiling. i think it is a pretty interesting topics. we talk about free markets and interest rates going up. if we really believed in free markets, when it we just not have a debt ceiling? you'll not be able to borrow more money, interest rates will shoot up. why do we need a limit? >> as far as principals, we do
not. congress wants to have a say in their overall issue of that. we already have evidence that it is too high. countries at our level of debt grow more slowly. that is not doubt and that is what the president needs to focus on. connell: our point here is that we talked about this a number of times, they will get their act together in washington when they are forced to. they will say -- when interest rates shoot up to a level that hurts us, then, they will cut spending. this debt limit negotiation comes up every so often and creates all this nonsense and
drama. we know they will raise the debt limit at the end of this, they always do. >> and they should, quite frankly. somewhere between january and august of this year, it is imperative that this country take a different course and entitlement spending programs. the numbers add up to something that is unsustainable. the u.s. needs to get the fiscal house in order. that is the leading edge that says you are in trouble. the job growth was about as exciting as my hairline. yes, it is their hot but no one should aspire to it. connell: you look great. thank you. the dow is not even moving. it is down less than a point. the bigger story here today and
moving forward could be the bond market. interest rates are starting to go up a little bit. as we bring in jeff saunders, that may be what forces washington to act at some point. it may also affect the stock market. why do you think about the movement we have seen or macy and interest rates. >> you have to turn your guy back up. it does not sound like much, the move has broken the index. it looks like the yield lows are in. at least to me.
connell: i have a follow-up. go ahead. >> interest rates can go up and stocks can go up with them as long as interest rates are going up for the right reason. connell: that is the thing. the economy is actually getting stronger. the jobs report today, maybe it leads to that or signals to that to some degree. we are not getting terribly excited about any of these numbers. stop buying bonds, they stop the stimulus and then what? >> i do not know if rates shoot up. i think you get a gradual move up in interest rates. i think that would cause a migration into u.s. equities.
connell: 18 to 24 months, it is difficult to predict these things. >> everyone is piled into bond funds. they cannot possibly get to their mandate of six, seven, 8% of returns with a ten year treasury yield. eventually, they have to go back into equities. use saw the numbers this week. even that suggests there is still a 12 year average life of cars and in u.s. flee. you can pull forward from that. i think it will be stronger than most people think.
connell: if rates are going up because of that, it is a pretty good thing. jeff, good to see you. happy new year. >> merry new year. connell: the actor patrick dempsey, would you buy coffee from this guy? he thinks you will. he is placing a bid that against the coffee giant starbucks. we will talk about what is left in your paycheck for you. people expecting a hit. just how big of a hit will it be? jeff flock is on that story. take a look at the oil market today. it is down. ♪
dispute over cancer medication. the ruling could have worldwide implications. they provide millions of patients in developing countries with cheap medications. patrick dempsey, his company, global barista won a bid against starbucks to save this other coffee chain which is also based in seattle like starbucks. while a bankruptcy judge will not approve the deal, dempsey tweeted out, we got it. thank you seattle. now shall have to pay cash.
according to bank officials, the vatican was not fully compliant with the european union safeguards against money laundering. it means visitors have to bring in cash with them to the vatican. the cash machines have been totally shut down there. gosh, what a horrible story. nicole petallides is back before charles. nicole: let's take a look at apple. investigations starting after in inquiry into the accounting practices. they allocate revenue and intellectual property. it is all about the tax
practices. you can see the stock is down over $14. not a great day for apple shareholders. some of the best performers on the dow today. continue to watch the dollar. the ten year 1.59%. back to you. connell: now, it is time to get to charles payne. he is talking about the mosaic company. [talking over each other] connell: we are unable to get out of it. charles: they had an earnings report today. the macro picture is always the same. they all have one thing in common. they want to lead. the world is getting richer.
they also made some really great comments. this is from management. over the long-term, trends are extremely promising for mosaic. connell: what has that problem been? charles: pricing. the mississippi river, near st. louis, is 20% below levels. they just signed a gigantic contract in china. it was not a big price number, but it did set a floor for prices. i like the stock here. it had a real positive reaction to earnings today. by the way, they were also company of the year. connell: we are all in now, charles. thank you for that.
platinum, one of the ways the president should really stick it to the republicans, apparently. many of you are about to find ouu how the government is taking out of your paycheck. payday and jeff flock has the story. jeff: are you getting a paycheck today? do you know it has less money in it? a lot of people do not know that. we will tell you how much less money and if anybody cares. a cold day in chicago. stay tuned. ♪
education. she is continuing treatment and living with her parents. talks on the nuclear program later this month. the top negotiator agreeing to head back to the negotiating table. the islamic state last met in june. the talks ended in a stalemate. hundreds of thousands gathering in gaza city celebrating the anniversary of the party. the leader predicts an end to the five-year split between the two. those are your headlines. back to,. connell: thank you very much, anna. this year is different after the fiscal cliff compromise with your paycheck. payday. jeff flock with the story.
jeff: we had been paying 6.2% to our social security pension. there was a holiday of 2%. and lots of people do not know that. i was just talking to another young lady. did you know you are getting less in your paycheck? >> no, i did not know that at all. let's put the numbers up. you're head is almost $1000 on the year. >> yeah right. is that from social security taxes? jeff: exactly. the numbers we are putting up right now are showing various different numbers. just for the payroll tax, it is
$1000 less if you make $50,000. >> wow. i know the fiscal cliff, they had all of that chaos. is it necessarily a good thing or a bad thing i guess that the taxes for social security are higher for that. jeff: some people think it is a good thing because you have more money and social security. >> is it true that social security will not even exist in the future? >> on the good side, i am glad that all the chaos is gone. jeff: you seem to have bought something at victoria's secret. i will forgo asking what you bought. >> people like me who like to shop, it is a good thing that
taxes did not go up to that aspect, at least. jeff: excellent. thank you so much. i appreciate it. it is always great to talk to folks on the street. you get a great sense of what everyone thinks. connell: i was worried about you there for a second, but you pulled it back. now, the power struggle in washington can lead to the president making a play for a whole new type of currency. pulling the rug out from them in the process. history shows us it is not good news for investors. current investors could change that history. that will be coming up. first, today, some of the winners on the s&p 500. ♪
♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi.
you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate. so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock.
>> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now!
connell: breaking news coming to us from washington did the house of representatives have just approved some hurricane sandy really. sixty-seven no votes came from republicans. one of them, former vice presidential candidate paul ryan. they will approve this 50 billion plus expected to be voted on january 15. this is 9.7 billion. let's go back to nicole petallides. nicole: back and forth action. i want to take a look at a very popular thing stock. that is citigroup. it is up 1.7% at the moment. some positive comments over at goldman sachs. this is very interesting.
i also wanted to take a look at jpmorgan. a lot of calls out of goldman sachs on these financial stocks. the banking industry has in of arrow. jpmorgan of 30%. i do not think anybody would be complaining. back to you. connell: thank you very much. avoid the debt ceiling five. it is gaining some traction among communist. mint platinum coins worth trillions of dollars. it sounds crazy.
this is apparently for real. elizabeth macdonald is here to talk about it. >> it is basically gaining momentum. the huffington post has this idea up. there is a lot of problems with this idea. let's show you what the problems are. we will be the -- all current gets devalued. you cannot print credibility. the other issue is the currency market, the treasury market, you see chaos and volatility there. you cannot just print mint coins out of thin air. most importantly i'm a you would invite a constitutional crisis. namely, the federal reserve is
owned by the regional banks. they will say look at our treasury bonds. the other constitutional crisis is that congress can spend money. they cannot create money out of thin air. the president cannot do that either. the u.s. credit rating will likely go to junk if this moves with me. connell: things sound crazy sometimes because they are. that story kind of speaks, we brought it down a little bit. with that, we bring in grover
norquist. before we talk about that, i thought we would have you on saying, boy, this is a terrible week for you. you do not see it that way at all. >> no. actually, what happened was we just got 85% of the bush tax cuts made permanent. for the last 12 years, we have lived with this over our head that at any moment we could have -- there was a $500 billion tax increase that took effect for just a day or two. without congress doing anything. congress acted. we got 85% of that tax cut saved 499% of americans. we wanted all of it made permanent. we had none of it permanent for the last 12 years.
we now know what the tax code looks like it we move forward to fight to reduce spending. connell: that is what i want to talk about on a couple different fronts. the white house will want more revenue. they have $600 billion in taxes out of this. you are shaking your head already. >> first of all, the old argument from the democrats was, we will raise taxes and cut spending. they fooled president bush. this last couple of months, they were pretending that they were for this grand bargain. at the end of the day, the president got his pound of flesh what do they do, they spent more money, not less. i do not make that.
connell: they see it at the white house that they are on a pretty good roll in the republicans are a mess. especially in the house. >> they have it backwards. the reason they were able to get the pound of flesh this last week was automatically taxes went up, but nothing happened. they just said, we will not allow things to happen and keep moving forward. the next three fights worked just the opposite way. two months from now, there's a question or, $1.2 trillion reduction takes affect automatically. the president has to defend his spending. if he does not get a debt
ceiling increase, he will have to come to congress, get an agreement and the boehner rule is in place. you want a trillion dollars in additional debt ceiling because that is the rate at which obama is running up deficits. you choose. we did this in 2011. the president gave up $2.5 trillion. give me your prediction. are you confident to say that there will be no more tax increases? >> yes. you cannot raise taxes now that we have gone past this stupid fiscal cliff. you cannot do that without the republican house of representatives voting yes. without the democrat senate voting yes. none of them want their fingerprints on obama's tax
increases. they will be in the witness protection program. the republicans will cheerfully vote no. i do not even be in the room when you allow a tax increase to happen. they were voting against. you have a very very angry republican party in the house. it is about time. we need it. connell: thank you for coming on. grover norquist. the huge loss of life in syria. there seems to be little hope to ending the fighting. these numbers are just awful. then the reelection and the markets. history does not favor investors. fdr reelected three times.
♪ >> here is your fox business brief. the service sector spending at the fastest pace in ten months. it climbed more than expected. 56.1. readings above 50 indicates expansion. suntrust getting a boost. goldman raising suntrust rating to a buy. online shopping this holiday season climbs 14% from last
year. it fell short of the market research firm initial estimates. shoppers almost immediately pulled back due to uncertainty about the fiscal cliff. much more still to come. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. get started at legalzoom.com today. we asked total strangers to watch it for us.
thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needsn ally. connell: a news alert from syria. the death toll has exceeded 60,000. this adapter 21 months of raging conflict in the area. the reports showing an estimated 220 killed. the united nations league on oil. that is some prediction.
we probably have not paid as much attention as we should to this story. boy, 60,000 is some number. >> nothing is improving. nothing was done for syria. we see that the rebels are escalating and we see that the regime is responding with unusual violence and pounding cities with their people. connell: we talk about our own economy.
where the economy is going domestically. domestic policy on the economy is where president obama's second term will be focused on. what will the united states do or what should the united states do? >> there is a cliff also coming into the middle east that is a complete change to the landscape. libya will face this. more importantly, syria is going into a massive civil war which could become a religious war. we will see even years of the same type of conflict. it would have to make a decision to enter. it does not have to be on the ground. it does not even have to be in the air.
connell: what are the odds that you would put on u.s. military involvement in syria? >> none so far. there will be no ground troops. connell: the question is, you do not see that changing? >> when we were at 20,000, with that baby out 40,000 it would change.% it is a very sharp decision to not intervene. connell: thank you, as always. at a quarter till the hour, let's go back to the new york stock exchange. nicole is talking netflix this time around. nicole: netflix has had a nice run in 2012. wedbush, the analysts predict
that netflix will be unprofitable in the coming year. despite that the fact that the stock has a run-up, this is not good news to have an analyst react this way. we are certainly doing well this week. yesterday we were virtually flat. now we are tacking on another 25 points. so far so good for the dow jones industrials. they are all with of aeros. connell: all right. thank you for that. college football bowl season. the ducks last night just rolling over kansas state. right from the opening kickoff. it is an unlikely one point ruling that has everyone talking. we have some sports coming up for you next. first, some winners on the nasdaq.
connell: markets now talking about sam stovall in a moment. we have some sports first. this is oregon taking on kansas state. it took 12 seconds to score right off of the opening kickoff. the thing about this game that was interesting is there was a rare -- here it is. you will see it. they blocked the kick. it ends up in the end zone. because it was in the end zone, it was a one-point safety in oregon's favor. the last time that was called was 2004. kind of weird. one other quick note, espn has just reported the new coach for the kansas city chiefs. he was there for more than a decade. they do have five pro bowlers on
the team. their last coach was fired. he was with the chiefs the last four years. as we move on with the markets, there is a little more to talk about. maybe things will be brighter this time around. after we have gone past the fiscal cliff. sam stovall who was a kicker and college is with s&p now. >> that is correct. i played for a good division iii school. my longest was 40 yards. that helped win the game for us. it was in the third quarter. connell: that is pretty cool,
actually. it could be something that comes in handy down the road. what should we expect based on history? >> i will not punt on this question. it is the weakest of all four years. also for gdp growth and corporate innings growth. i think we will probably get a little bit better this year. a .5% price appreciation to about 1550 on the s&p 500. i think it is because valuations right now are very low. that could end up helping us to have better than expected
results. we can get in there and get a pretty decent deal. the economy does what quips back washington could mess it up once again. they could step in and mess this whole thing up, midyear. >> they could. i think they realize they do not want to mess things up because their political contributors are those in the business. if they really do mess up this economy, there was into a government reduced recession, i do not think they will be able to get a lot of campaign dollars going forward. i think the republicans will press for as much in revenue cuts as possible. maybe we do get that margin for each dollar of tax increases. connell: there will be some more tax hikes, don't you think.
>> i think we are done. i think we have to start looking at the consequences on corporations. we need to make sure that we can reduce that bar. there is a lot of money that could go to work. connell: are you still upset about the switch? >> not too much. because of that i had the opportunity to meet one of my heroes. connell: there you go. sam stovall. great to see you today. washington's fear gauge is what we are moving onto the next. the fix actually falling within 30% in three days. sandra smith has the trade. sandra: traitors down here watching the volatility index.
actually, some confidence if you use it as a fear gauge. the vix dropping below 14. if you look at a one week chart over a 30 day period, the vix, down 37% in three days. just to give you this that on that, that is the biggest client since may 2010. it has only happened three times. what is happening, this is an indication that folks are complacent with this rally that is going on. we are not saying that concern in the marketplace. however, some traders remind me that this can often be a contrarian indicator for the stock market. it can indicate that folks are
complacent and it can sometimes indicate a turnaround in the overall trend in the stock market. it has been up the past couple of days. you get that complacency and you start to step back and say our think starting to look too good right now. back to you. connell: thank you, sandra. now we move onto one of my favorite phrases. is this the new normal? we are talking about job growth. should we expect just more of the same quips? cheryl casone and jeff neal are coming up as markets now continues. don't go away. ♪
markets now continues, one shower in new york city and got a tip from the production staff that there is a busy hour ahead for cheryl casone. cheryl: the prompter says that. connell: what prompted? it is a busy friday. cheryl: it is a busy friday. did you not see how busy was this friday? were you all over it? connell: have a good hour. cheryl: i am cheryl casone. we have a busy friday for you, and new year. the nation's employment picture is the same. we have wall street reaction.
the dow is up 16 points and we will look at the numbers. use the administration doing enough to tackle the jobless picture? we will debate that in a moment. plus the time could be ripe for president obama to add these ceos to his cabinet to make it business friendly. we will ask the democrats and republicans that will work. two washington insiders join us later on and american paychecks look different today. is the first heyday of the year with the new tax deductions like take home pay may be less than previously thought. it is the top of the hour on markets now. stocks every 15 minutes. nicole petallides on the floor of the stock exchange. a little bit of a change in direction. nicole: there is a change in direction. what hasn't changed is the fact we have been hovering around the unchanged line. you see the s&p is up 1/4% and a ticketing as that virtually unchanged and an up arrow, there's look at the dow jones
industrials, 14,409, it is a winning week, 12,938. we are seeing bank stocks, oil services doing so well today, so so far a winning week on wall street and take a look here at eli lilly, pharmaceutical company that expects good numbers for 2013. let's see how it is fairing, you saw that picture told you the story because there are five names and you see eli lilly soaring and the other four were not far off of the line that they expect to increase profits in 2013, cost control, productivity, they had a tough 2012 but giving a good outlook for 2013, he lightly up 3.7%. cheryl: we will see you 14 minutes from now. 155,000 jobs added in the month of december according to the labor department.
the big number this morning, unemployment unchanged from november revised rate of 7.8%. is washington doing enough to deal with the nation's stubbornly high unemployment rate? joining me with their take is warren mccarthy, chief economist for jefferies and labor department economist bill rodgers. when you were on the show in november you wanted tax reform, you said if the country got meaningful tax reform that the employment picture would get better. we didn't get that. now what happens? >> we did not get that, unfortunately. the best we got was removing the prospect of five hundred fourteen billion tax hikes in 2013. we still got a tax hike but not as severe as it was. the best thing washington can do to help the labor market is resolve all these political differences, get us past the debt ceiling, get us past whatever spending cuts are going to be necessary for long-term budget deal and i think the
economy is poised to generate stronger job growth than we saw today with boosts from the housing sector, the energy sector and manufacturing which is undergoing a revival. cheryl: the fiscal cliff discussion finally ended but at the same time you got what you wanted, you wanted to see unemployment benefits extended. you got your wish the we have an unemployment rate unchanged month over month. >> that really gets it. i agree with him. we really have to get a head winds and what is creating this uncertainty around a short-term and long-term fiscal issue and for media -- that will put more wind in the sale of households because they have to reduce their debt and increase savings, build that will back up in the home and that will be one of the key drivers. 70% of national income comes
from personal consumption. cheryl: at the same time i don't know that building a savings rate among the nation's middle class in particular will happen. the payroll tax, that holiday expires, that is one instance of how paychecks are different. we will talk about that on the show. >> you have the payroll tax go back to its original level to help preserve social security in the future and funding and a variety of income tax credits held for another five years. child care tax credit was held another five years and then you have the tax cuts that were done up until the $400,000 threshold. so you have a positive piece. cheryl: what about worried about the debt ceiling debate? we are about to go through another round of arguing in washington. what do you think they should do to stimulate and build jobs in this country which we still don't have on a meaningful level?
>> just get it done is what they should do. it is not just the debt ceiling. it is the point of live ridge. the issue is how much are we going to cut from federal government spending to get the budget deficit in line with what it needs to be on long-term basis and they are already squabbling over that. the other king is talking about discretionary spending and entitlement represent 60% of overall outlays. we really cannot get to the promised land unless we also addressed the entitlement situation which of course is politically unpopular because politicians, threaten their job security. cheryl: what do you say? should we address retirements? >> fiscal cliff 2.0, some people like talking about it today. we have to be careful. we can't take a stir approach and have across-the-board cuts. we have to make sure we minimize
the adverse effect on middle income families. for example in new jersey we have identified 1.1 million households out of eight million households, people who are asset limited income constrained and employed. some are in poverty but many are middle class families, families earning $60,000 a year and if we pull back on education, training, productive investments, expenditures that not only provide opportunity today but help us minimize poverty in the future, help us minimize people getting access, hurting themselves and the downturn, we run the risk of pulling back productivity. cheryl: my question was about entitlement reform. don't we need to address on the national level entitlement reform? got to talk about social security and medicare. >> right now there's a blanket conversation, raise the
retirement age. that is what are called -- we moved out of a manufacturing to a service economy but there are many occupations where trying to work until you are 65 or 70 is mentally taxing, physically taxing to be a nurse or police officer, it can't be done across the board. we have to have a bobble conversation. gerri: you agree on the phrase get it done and most americans feel the same way. >> for me it is getting it together. cheryl: somebody got yes, somebody got no. thank you. my next guest says another month of job gains in the health-care sector with almost 45,000 jobs added is one more reason to invest in pharmaceutical stocks. scott marden, united advisers, is here. you are liking pharma because of the jobs report. >> yes. i put a lot of faith in employment numbers as far as what sectors are like to invest
in for myself and my client. if you look at pharmaceuticals, look at health care numbers, they look really good. the health-care sector is one of the biggest job gainers of 2012. if you look a pharmaceutical the lot more people getting medication in the united states especially with the way congress is behaving ridge over the counter stuff doesn't work as well. i like pharmaceuticals, x p h owns all the pharmaceutical companies. cheryl: that had a double-digit return for 2012. are you confident you will still get that type of return coming in for 2013? we do have -- i don't know what this will do but you have medical device kicking in and taxes coming in to fund obamacare. you are not worried that will be negative on the pharma sector. >> not so much. you touched on it in the previous segment. the generational forces in the american population are such that medical devices will be in more and more demand. i like the fact the we are
moving further along in the future with regard to those companies so that is another reason i like this sector. cheryl: one other thing i want to ask about is the issue of worker productivity. go through the report today besides manufacturing jobs and today's report, productivity, do you think we will see worker productivity go higher, wages stagnant, unemployment level in 2013? that is what we saw today. >> maybe two of those three things. something interesting that is going on that no one is talking about, worker productivity is actually slowing. over the last of reporters productivity has been declining. that is an interesting kind of situation because what is going to happen? employers have to hire more people or say to the worker they already have you have to work more and because the labor market is so bad, so many people are looking for jobs they may not have to pay more to those people. that will be an interesting
situation because that is one way companies are going to be able to overcome the hit they will take on potential profitability with all the new taxes this year. cheryl: keep working longer hours, paying the same, happy you have a job kind of situation. the labour participation rate is low, 63. you are worried about that? >> very much so. it is much nearer an all-time low and that is not a great sign for the labor market. you want to see that bummed out and you will see the unemployment rate pick up as the job market gets stronger because more people consider themselves looking for work which is a good sign. cheryl: always good to have you on lots of issues but very interesting, you know i will follow you throughout the year on that. you know me well. white house economic adviser alan krueger says the latest jobs report shows the economy is healing and problems won't be solved overnight. peter barnes sits down with him moments ago in washington. what did he say?
peter: alan krueger and republicans are running with this morning's report as they head into the next battle on the fiscal cliff, spending cuts and the debt ceiling. the president's top economists saying that the resolution of the first part of the fiscal cliff extending the bush tax cuts for most families should help economic growth and job creation by keeping more money in consumers' pockets for consumer spending. now he says republicans need to act on part 2 of the fiscal quick, raising the debt ceiling. >> one of the reasons it is important congress resolve the issues that were left unresolved in the taxpayer relief act is the economy will do better if we address the issues like the debt ceiling without drama. peter: republicans are saying today's jobs report shows washington needs to reduce spending and deficits to boost economic growth and job creation. john boehner out with the
statement saying all of that, the drag on quote the house will pass real spending cuts, meaningful reforms of entitlement programs that are driving us deeper into debt and a fairer, clean air tax code. cheryl: were you surprised? he sounded like he is truly saying this is not a turning point. there is more work to be done. he gives us more ideas what we can do to get jobs back in this country? >> the idea is to have the president's balanced approach for deficit reduction and economic growth. cheryl: we like to see it happen. great interview, thank you very much. the house has finally approved a bill aimed at superstorm sandy relief, at least some of it. with victims are going to have to wait for the rest of that money. what would you say to a new platinum:? is a way the president could win the debt limit fight?
cheryl: 15 past the hour. stock >> caller: minutes. sandra smith and the trading pits of the cme watching gold. charles payne how to make money on a networking stock. nicole petallides on the floor of the new york stock exchange where we are getting some traction as charles just said to me on set. nicole: we are not only holding on to the gains but gains for the week. that is a good sign, a good start to 2013, the january effect, people rushing in to make their trade. lot of people sold last year for tax purposes and then start to get back in throughout january and february. i want to look at a name that is leading the s&p, quicksilver. and the young folks especially, 7% today. and price targets $6.50 a share. let me bring perspective into
this. it is hot today. of $17 stock, they had exchange of ceo and goldman sachs, that is the latest here. sandra: let's throw on a bold start and look at the movement here. we have been seeing significant decline in the price of the yellow metal, down again today, down $30 hitting the $1,644 at 4 when ounce range. we have seen continued selling and what cakes in was the fed announcement last night in the latest minutes from the fed policy meeting talking about ending the bond buying program. that would be a plus for the u.s. dollar and a negative for the greenback and if you get a weak dollar you obviously see that play out in gold prices. gold is down $30 us section so as we talk about freighters on the floor, there's a lot of optimism with gold because it
has gotten beaten up so much so hard so fast that a lot of big investment banks are coming up with buy signals on the yellow metal heading into the 2013 year. gold down ferry dollars, a big sell-off in today's session. cheryl: that might be an indicator what happens in 2013 if the dollar gets stronger. that is the big story. sandra smith, thank you. we will see you at the bottom of the hour. time to take money charles payne. he has a tech stock, your portfolio will end for you. charles: i don't think the fed will do anything. cheryl: i think they reneged on interest rates. by the end of the year. charles: we will see. it would be good news for the overall economy if they can do that if they have the confidence to do that. i hope that is the case. i like riverbed technology. october 31st company not an all-time high of the $31. it is one of these data center
plays. [talking over each other] charles: amazing business, the virtual cloud software part of it and this is what happens when they hit a speed bump they don't slow down, they -- the wheels come off but it is exaggerated numbers with record revenue and record net bottom line and i think they will continue to just sort of pick up momentum again. from here i am looking at a move to 24 longer-term, at least 28 in the next three to six months. maybe you would news links in as the stock picked the stock is oversold and like the action today. cheryl: a pretty decent move and i wonder if there's something behind that pushing that higher. charles: couple smaller names like this one that were upgraded by second-tier firm. it just looks like down here there could be accumulation. cheryl: anything wireless, anything loud, anything that is data whether it is data storage or data sharing his technology,
where we should be putting our money. charles: a lot of talk about the new normal being 7%, 8% unemployment, because productivity miracle like cloud computing which obviously won't go away. cheryl: at&t and verizon will keep hiring. everyone going to the phones. thank you, charles. do not look now but your first paycheck of the new year may be substantially lower. jeff flock will look at those numbers for us. also a ruling by a court to cause the price of prescription drugs to store. but first take a look at the world's currencies, just talking about the u.s. dollar. 0 little weakness in the euro but the dollar euro story will continue in 2013. [ male announcer ] this is joe woods' first day of work.
and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today.
republicans including one from former vice presidential candidate paul ryan. the bill was expected to pass through the senate by unanimous consent. three new york city police officers are recovering after being shot in separate incidents. an off-duty cop was shot in the side, his family's car dealership in the bronx. four were arrested and hour later in brooklyn two plain clothes, officers were hit on a subway car. a suspect was killed in that incident. the flu outbreak is continuing to spread across the united states. according to the centers for disease control 41 states are reporting widespread influenza activity of from 31 last week. officials say it is too early to predict when the season will pecan those your headlines. cheryl: thank you very much, appreciate it. the first payday of the new year and you might be in for some paycheck sticker shock. jeff flock is talking about it in illinois. jeff: i never want to say i am
shocked by what people don't know because a lot of us are busy doing our jobs, not necessarily plugged into the news, doing our day-to-day thing but i am somewhat surprised today by the number of people who don't know that today they got a pay cut. you didn't know that either. let me tell you about that. that is the payroll tax holiday that expired as a result of the fiscal cliff compromise. look at the numbers, how much your paycheck likely decrease today. if you make $30,000 what do you take home? $600 of social security payroll tax hit. $50,000 it is about $1,000 it. why is that? it went from 4.2% to 6.2%. that is on yorkers $113 worth of income. your maximum doing calculations on this, the maximum you would pay, and if you make over
$113,000 your maximum hit would be $2,274,000. several people we talked to out here didn't have a clue about it. they thought the fiscal cliff got resolved. what do you mean there's a tax increase? is a shock to me but that is what we are hearing out here. look at your paycheck sometimes the first of the year some deductions kick in that weren't there at the end of the last year and you may not notice it but it is there. cheryl: it will be interesting, we don't know what consumers are going to do. what is consumer behavior going to look like with this change? for those lower income americans it is a big hit. when you lose that 4% loss. >> it is $100 billion out of the economy and that may have an impact even if individually to some of us a doesn't it may have
an economic impact. cheryl: the numbers will play out quicker than we want them to. thank you very much. a pharmaceutical showdown is happening in india. the supreme court expected to rule on a 6-year-old legal battle between no vargas and india generic drug companies. involved a patent dispute over cancer medication, could have world wide implications if the drug industry supplies millions of patients in developing countries with cheaper versions of life-saving medication but pharmaceutical companies spend billions on research and development to get the drugs to market and argue it would hurt the creation of new lifesaving treatments. will 2013 produce a more business friendly obama administration? the time could be ripe for the president to have ceos into the cabinet. we will get information from washington insiders. as we go to break look at today's big winners.
>> may replace tim -- tim geithner's treasury secretary, is it time for a ceo to join the tablet? the platinum closed. what president obama may stick to the republicans by minting a platinum:. looking for extra cash? how about selling your old cellphone? big ideas with the man who has automated that process. 30 past the hour and stocks now as we always do every 15 minutes. looking at gm. nicole: big news since we got gm and ford this week. these stocks have done so well, we hit new 52 week highs the general motors pulling back 1/4% on a recall. let's break it down all little bit recalling more than 69,000 trucks and vans globally and the problem is a steering column defect. you park your truck and it could potentially role way.
we're talking about some names, if you have a general motors truck you should delve into this more but at first glance it is looking like a 2013 cadillac escalade and chevy avalanche, not clear what your those are but you should look into this because it could potentially be a problem. recalling 70,000 vehicles. looking abroad market the dow jones industrials up 20 points, doing well, 13,411. i won't a 14,000 yet but there is the feeling we have moved to the upside. cheryl: the january effect to the positive, thank you very much. is it time for a business executive to join president obama's cabinet? there has been talk the administration is considering appointing american express chairman to replace tim geithner and considering xerox's ceo as commerce secretary. is this a good idea? former special adviser to president george w. bush billon
gwen and he is senior vice president of guggenheim and press secretary to the hillary clinton presidential campaign of public solutions with me as well. i want to thank you for being with me. you know him. will he say yes to the administration if they push him into the secretary roll? >> often when the president asks citizens to step up to the plate and do what they may or may not want to do, it is hard to say whether he will step away from what has been by all accounts a great tenure at american express, but i am sure if the president calls he will be ready to take a call. cheryl: that is the question. there has been several conversations between the president and ceo about its treasury secretary. we need a business leader in that role. >> the fact that he is being considered if those reports are correct and he is being
considered it shows there's a seriousness to get the business community more involved in the economic recovery. and rebound and that is a good thing and consistent with what this president has tried to do up until now. i am not sure a business person is the only person who could step into that role but it certainly shows a commitment the president wants to have business somewhere in the cabinet whether it is congress or treasury or both. cheryl: you are saying the president has done a good job reaching out to business but many disagree that he has been more entire business and this is a way to save face with the business community bringing in these people. >> he has repeatedly tried to bring good relationships into his administration. his last chief of staff, bill daley, had good relationships with the business community. he has a number of corporate ceos, serve on various
capacities, informal and formal advisor is to his administration but at the end of the data's president and everyone recognizes, this is not something just the white house can do or just congress can do, certainly not congress can do. they can't do anything. everyone has got to work together and even though it was a tough campaign and business wasn't always with him perfect that he is reaching out and saying let's work together moving forward is the right move. cheryl: do you think he has done that? has he reached out and put people with business experience in leadership roles? >> he has been a friend of the business community, they spend the better -- first part of his term demonizing wall street and big business. this is clearly an attempt to attack that approach which will be helpful to the economy if the president is sincere. there's a reason we have had such a slow growth in the
economy, uncertainty that washington has put forth in terms of what the fiscal regime will be to impact policies and we have had really kind of an administration that has seen business as an adversary. i hope that changes because it will lead to more productive -- cheryl: the other name has been floated about, the odds on favorite is jack flew who has been with the president, two years at city on his resume, if jack blue is the guy, what does that say about the administration's plan for the next four years in regard to the relationship with business? >> i don't think putting a business person in the job is the only way to demonstrate a willingness to work with the business community. whether it is jack wu orson named coming off of the hill that i heard floated, i think as long as this president makes a commitment to working with everyone, with republicans on the hill or the business
community, to try to get this thing moving again, that is what is really important and i have seen positive steps in that direction and no reason to believe that will continue. cheryl: you agree with that? >> i agree with that. we are in a critical time in the nation with respect to an economy that is very fragile. with respect to wall street it is important to have the right person in the treasury and having -- cheryl: is jack lew the right person? >> someone with deeper wall street experience, deeper finance experience could be meaningful in this period. that is not a slight at jack wu but is the reality. we have had treasury secretaries that come from industrialists and business people. it is obviously the president's prerogative but for the benefit of the economy we would give markets a lot of comfort if there was someone with the finance. cheryl: i would love to have you back to discuss this. we get a sense sue and who is
going to be the point ee. thank you both for joining me. good conversation. is the moving zero dark 30 too realistic? the senate intelligence committee is said to be launching an investigation on whether the director and screenwriter were granted in appropriate access to the cia during filming of the thriller. the story behind the deadly raid that killed usama bin laden has been criticized by some in watching for its depiction of torture. the senate panel wants to determine where those descriptions of torture came from. believe it or not the vatican has credit problems. the pope is running a cash only operation. let's look at the ten year treasury.
shares tumbling to downgrade said, the first firm cut the company's rating to neutral and lowered the price target $6 to $80. that is slowing same-store sales growth momentum in canada as well as further margin pressure. on the flip side take a look at shares of johnson and johnson climbing higher after deutsche bank raised its rating to buy from hold and boosted its price target to $82. deutsche bank thinks there will be improving trend this year. the firm says recent and new drugs should drive, sales. that is the latest from the fox business network giving you the power to prosper.
cheryl: breaking news, exxon mobile just now telling us is going to spend $14 billion to develop the oilfield offshore of canada, canadian province of newfoundland. exxon says it expects to get the project operational by 2017. the platform will deliver 150,000 barrels of oil day. the project, construction project expected to create 3500 jobs. here is how the stock is trading. $88.62. are you looking for some fast cash for your slow, outdated phone? my next guest says his kiosks are nothing to help you get paid and help the environment. joining me for the small-business big ideas, the founder of eco atm. interesting idea that you have got here. you have been in the tech
industry 20 years. what made you think this was the right way to go? >> the original insight came from a report that nokia did in 2008 where they surveyed 13 countries, 6500 households and the consumers were only recycling at a rate of 3%. cheryl: old cellphones and things like that. i want to explain to our viewers these are kiosks in malls across the country. you put in your old phone and it gives you cash, the atm hit to the name. interesting idea. do you think there is growth for this? are you making money off of the idea? >> absolutely. we won't say how much. we are still private. we put millions of dollars back in the consumer's hands this year alone for stuff that would have been cluttering the landfills that they got paid for it. we make a little money in the process and it is good for the
environment. cheryl: cellphones, ipods, what about tablets? many americans are upgrading their tablets. can i put that in the atm as well and get paid? >> absolutely. we just added that. we have been running a test and launch that nationwide. cheryl: you did a lot of technology start-ups and many companies that you actually raised capital for sold off companies like motorola and microsoft and apple. is that the plan? >> we are building an enterprise that does well and the exit state care of themselves. we are concentrating on building a business and expanding and growing debt. cheryl: say i have a phone that is not even a year old but i am done with it and want to recycle it. what would i get for the phone and what do you get for the phone? >> the technology great every phone differently. there have been 4,000 different phones made since the beginning of time and we evaluate each of
those separately, identify them and grade them in eight positions so the price range differs on every phone. it depends on the phone but the year-old phone is somewhere between 75, and $250. cheryl: you turn around and cellphone and it gets refurbished by someone. where does it go? is it going overseas were saying in this country? >> surprisingly there's big domestic market as well as offshore. domestically we don't currently purchase a lot of use phones directly from retail but that is changing. they get refurbished and a lot of people have mobile phone insurance and these phones replaced those, windows broken or warranty replacement and things like that. cheryl: we were showing our viewers a map of where these are located. thank you. a quarter till every 15 minutes, you are watching coin star.
>> ceo paul davis is resigning, 55 years old. chief financial officer stepping into the ceo role. stock is down 5%. ceos leave and stock jumps but not in this case, the cfo is stepping up to become the new ceo but this has been expanding in the lucrative and competitive online video streaming market so they went from putting coins in the kiosk to getting movies out of the kiosk and going on to streaming videos. some growth potential for coin star to follow, highly intense competition in that area. the dow, the nasdaq ntsb all up arrows antaeus and b 500 up 1/3%. we held on to this week's gains and the gains of 2013 so far. cheryl: thank you very much. see you at the top of the hour.
hey cash only, may be the newest model from the vatican after the bank of italy pulled its authorization to accept credit cards and other a electronic payments from visitors there. according to bank official the vatican has not fully complied with the european union safeguards. money-laundering. a catch only operation also means visitors have to bring cash with them since cash machines have been totally set down. maybe that will be in his address this sunday. could this be the answer to ending the debt ceiling fight? liz macdonald ahead on a crazy debate over the platinum coin. as we go to break we will look at the winners on the nasdaq. the nasdaq is higher as is facebook, expedia and more.
the fight over genetically modified food labels has spread to washington state. in november california voters rejected a ballot member that would have required food companies to include any genetically modified ingredients which the federal government maintains are safe to consume. critics say the measure would raise food prices. looks like las vegas was the turnaround story of 2012 when it comes to real estate. prices were up 16.3% year over year with a median home price at 147,000. actor patrick dempsey better known as greeny has won the assets of the coffee chain which is being sold in bankruptcy court. he said we got it and thank you, seattle, to his followers. his company will pay $9.1 million for the seattle-based coffee chain beating out a bid from starbucks who also was participating in the bankruptcy option. that is your west coast minute.
to avoid the debt ceiling fight, austerity making the rounds is gaining traction. treasury convince the platinum coin worth trillions of dollars to wipe out the government's-really? liz macdonald making heads or tails of it. liz: here is the deal. we can't default on the death. according to the fourteenth amendment, protect the validity of the public debt. restrictions in the u.s. treasury from printing a lot of paper money supposedly. [talking over each other] liz: the u.s. mint had behest of the treasury and print platinum as commemorative colin's but now the blogosphere is on fire as a way to pay down the debt, a big story in the huffington post, jerry nadler of new york, but let's debunk this move to repay the u.s. death.
here is the problem. inflation. any time you print any money the u.s. dollar will get devalued in the united states. you also trigger currency market chaos, problems in the precious-metals market not to mention speculators in platinum, treasury market volatility, this is the big one. a constitutional crisis because here is the deal. congress has the power to spend. congress getting in on the act to get the ederal reserve to mend more money in the form of platinum. cheryl: in the constitution can a make platinum a true currency? liz: i don't think they can on the trillion dollar level. the other problem when the federal reserve accepts that, to wipe out or raise the treasury debt the federal reserve loans, getting paid platinum coins, regional banks, the fed regional banks and the federal reserve. jpmorgan, we get rid of your treasury debt in exchange for a lot of platinum coins. cheryl: long road nearly impossible for them to do this
but on the other side the president could come in and say i want to platinum colin and here's how we will fix it. liz: not sure we could do that without a huge constitutional fight and the credit rating might junk status of the move was made. cheryl: also because of the devaluing of the dollar and what that would do to currency traders and oil and gold. so the speculation -- liz: we are talking trillions of dollars of platinum coins. can't just that will make a platinum coin worth $2 trillion. cheryl: is really heavy. i don't want platinum in my bag do you? it is really heavy. all right. bolt looks good on you. i want you to stay around. i have a feeling you probably like this show. from battling over the fiscal cliff deal to a cameo on nbc, house minority leader nancy pelosi sure has been busy. the congresswomen taking a break
from her duties to make a guest appearance on the season finale and series finale of 30 rock scheduled to air at the end of this month. she is not the first politician to appear on a comedy series. former vice president al gore, former secretary of state condoleezza rice have appeared on the shows, vice president lizzie joe biden, i digress. liz: journalists and comedians anyway, nancy pelosi has already shown her comedic talent. i am wondering is tina fay going to be playing nancy pelosi as she did sarah palin? i'd doubt it. cheryl: not sure about the timing. i will watch where the damage done now how funny they will be. i don't know how funny she is. liz: she is funny but doesn't mean to be funny. the things she says on the floor. cheryl: a lot more coming throughout the afternoon on the possibility of a platinum:.
liz: i am doing the reports. liz macdonald at last appearance on fox business today. cheryl: there's a lot more coming up in the next hour of markets now including this. the markets are yawning about the december jobs report. got the dow up 18, 13,409 but it could have been worse. we are talking about that in the next hour. a major midwest employer is looking for workers. they are coming up short. terry dunn is the c e o of major construction company j e done. he will talk to melissa and laurie about the fact that he cannot find workers. that is next. stay with us.